Monday, 5 January 2015

Easy chart of deductions u/s 80C to 80U every individual should aware of !

The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax , deduction u/s 80C,80CCC, 80D, 80DD,80DDB,80G , 80GG, 80GGA, 80GGC , 80IAB , 80IB , 80IC , 80ID ,80IE , 80JJA , 80QQB ,80RRB , 80U are relevant to Individuals depending on the condition fulfillment. The following chart of deductions will give instant and fair idea about certain deductions to individual tax payers. (section 80IAB to 80IE are not discussed which are specific to business men ) .

Sl No

Section

Details of deductions

Quantum

1

80C

General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc

Maximum Rs 1 ,00,000 is allowed.

Investment need not be from taxable income.

2

80CCC

Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income.

Maximum is Rs 1,00,000

3

80CCD

Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible.

Maximum is sum of employer’s and employee’s contribution to the maximum : 10 % of salary.

4

It should be noted that as per section 80CCE , the maximum amount of deduction which can be claimed in aggregate of 80C ,80CCC & 80CCD is Rs 1,00,0000

5

80D

Medical insurance on self, spouse , children or parents

Rs 15,000 for self , spouse & children

Extra Rs 15,000 for insurance on parents. IF parents are above 65 years, extra sum should be read as Rs 20,000

Thus maximum is RS 35,000 per annum

6

80DD

For maintenance including treatment or 7insurance the lives of physical disable dependent relatives

Rs 50,000 . In case disability is severe , the amount is Rs 1,00,000.

7

80DDB

For medical treatment of self or relatives suffering from specified disease

Acutal amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen , amount is Rs 60,000

8

80E

For interest payment on loan taken for higher studies for self or education of spouse or children

Actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full.